How different are the Spanish self-employed workers by underreporting their incomes?
Publisher: Universidad de Santiago de Compostela
ISBN: 978-84-695-1574-7
Year of publication: 2012
Pages: 11
Congress: Encuentro de Economía Pública (19. 2012. Santiago de Compostela)
Type: Conference paper
Abstract
This paper o¤ers estimates of the underreporting of income by self-employed workers using the Spanish household surveys over the period 2006-2009. We use the well-known model by Pissarides and Weber (1989) but extending its interpretation for admitting also the (lower) concealment of income by salary workers. Our results show that the reported income by self-employed has to be increased by about 25-30 percent to obtain the level of income which would equal the level of underreporting by employees. Our estimates are robust to changes in speci.cation, endogeneity and non-linearities.